Enterprise Risk Management: Product Liability
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Enterprise Risk Management: Product Liability
Enterprise Risk Management: Product Liability
Introduction
The purpose of this document will be to examine and identify tort risks identified in the Product Liability video. Team B will identify the potential tort risks portrayed in the video, examine a particular tort case using the 7 step process, and discuss business risk mitigation and management to prevent damages from situations like the ones portrayed in the video.
Potential Tort Risks
Torts are, by their most basic legal definition, a civil wrong (Williams, 1982). Essentially, when one party has taken an action, willfully or not, that has resulted in a loss by one or more other parties, but no criminal law has been broken, a tort is likely to have taken place. Business organizations and private parties alike are responsible for their actions and can be held liable for torts they commit.
In the Product Liability, video Non-Linear Pro is at risk of being found liable for several torts. The primary tort that NLP is at risk of is Negligence; specifically dereliction or breach of contract. NLP had both a contractual and an implied obligation to provide a product that met the specifications they promised. When the client complied with all instructions provided by NLP, they discovered the product was in fact inferior to what was promised.
ERM Process
The tort that team B chose to implement an Enterprise Risk Management process for is breach contract in which the lessee did not have the chance to return an offer. The lease was over $1,000 the contract must have been in writing that both would agree to be a lease. The ERM can be set as a procedure that no purchase or lease for over $1,000 can be made without upper management approval. This serves two purposes, one any asset over $1,000 needs to be inventoried two is that all contracts and large purchases are controlled by management.
Management must set a procedure that provides a framework...
Enterprise Risk Management: Product Liability
Introduction
The purpose of this document will be to examine and identify tort risks identified in the Product Liability video. Team B will identify the potential tort risks portrayed in the video, examine a particular tort case using the 7 step process, and discuss business risk mitigation and management to prevent damages from situations like the ones portrayed in the video.
Potential Tort Risks
Torts are, by their most basic legal definition, a civil wrong (Williams, 1982). Essentially, when one party has taken an action, willfully or not, that has resulted in a loss by one or more other parties, but no criminal law has been broken, a tort is likely to have taken place. Business organizations and private parties alike are responsible for their actions and can be held liable for torts they commit.
In the Product Liability, video Non-Linear Pro is at risk of being found liable for several torts. The primary tort that NLP is at risk of is Negligence; specifically dereliction or breach of contract. NLP had both a contractual and an implied obligation to provide a product that met the specifications they promised. When the client complied with all instructions provided by NLP, they discovered the product was in fact inferior to what was promised.
ERM Process
The tort that team B chose to implement an Enterprise Risk Management process for is breach contract in which the lessee did not have the chance to return an offer. The lease was over $1,000 the contract must have been in writing that both would agree to be a lease. The ERM can be set as a procedure that no purchase or lease for over $1,000 can be made without upper management approval. This serves two purposes, one any asset over $1,000 needs to be inventoried two is that all contracts and large purchases are controlled by management.
Management must set a procedure that provides a framework...